In addition to leasing, managing, marketing, and overall maintenance of real estate owned by others, It is also expected that a property manager function as a market analyst, leasing agent, accountant, advertising specialist, and maintenance person all in the same day. In addition, the property manager frequently interacts with people in various professions, including lawyers, environmental engineers, and accountants.
The property manager has three principal responsibilities:
- Achieve the objectives of the property owners
- Generate income for the owners
- Preserve and/or increase the value of the investment property
Some property managers work for property management companies. These firms manage properties for a number of owners under management agreements (discussed later). Other property managers are independent. The property manager has an agency relationship with the owner, which involves greater authority and discretion over management decisions than an employee would have. Illinois property managers must be licensed managing brokers, under a Sponsoring Broker, because they engage in collecting rent, negotiating leases and rentals, and procuring tenants, among other functions.
However, the Illinois Real Estate License Act of 2000 specifically exempts resident managers of apartment buildings, duplexes, and apartment complexes from licensure requirements when their primary residence is on the premises being managed.
Illinois permits individuals whose real estate practice is limited to leasing or renting residential property, collecting rent, negotiating leases, and similar activities to obtain a limited scope leasing-agent license instead of the broader-scope broker or managing broker license. An individual with a leasing-agent license must be sponsored by a sponsoring broker.
Securing Management Business
Possible sources of a property management business include:
- corporate owners,
- apartment buildings,
- owners of small rental residential properties,
- homeowners’ associations,
- investment syndicates,
- trusts, and
- owners of office buildings.
New Opportunities
Community association management
The prevalence of homeowners’ and condominium associations, combined with complex planning and development codes, have placed new demands on property managers. Working as part of a team, property managers assist in providing a comprehensive array of services to volunteer boards.
The Illinois Community Association Manager Licensing and Disciplinary Act was created :
- to provide for the regulation of managers of community associations,
- to ensure that managers are qualified to engage in community association management,
- to provide for high standards of professional conduct by those licensed.
Anyone acting under this license cannot perform any activities for which a real estate broker’s license is required under the Illinois Real Estate License Act of 2000.
Resort housing
Managing second-home and resort rentals presents specific challenges. These managers must be able to care for and maintain often-vacant properties and be able to attract and manage short-term tenants.
Housing for the near-elderly and elderly
Opportunities abound in managing housing for the near-elderly and elderly, many of which are federally assisted housing programs. Since subsidized housing is involved, these property managers need to be familiar with state and federal rules pertaining to eligibility requirements and income verification.
Manufactured homes
Homes built in factories meeting HUD specifications are called manufactured homes (incorrectly, mobile homes). These homes are permanently attached to concrete pads or foundations. They can be placed on individual lots or in Manufactured Home Communities. They are taxed as Real Estate.
Mobile Homes
These homes are designed to be towed from place to place, and as a result consist of lighter construction which does not age well. Some mobile homes are located in Mobile Home Parks or Communities, and are not moved once they are placed on a lot. They are normally not permanently attached to the land and as such, are taxed as personal property. The majority of these lots are rented (day, week, monthl, year) but some are purchased by the mobile home owner.
Concierge services
A new area for property managers to specialize in is the training and managing of concierge staff for office buildings and other settings. Concierge staff is responsible for anything from arranging for taxi rides to assisting with visual aids equipment for a conference.
Asset management
Asset managers monitor a portfolio of properties similar to a securities portfolio by analyzing the performance of the properties and making recommendations to the owners of the properties. Real property asset management helps clients decide what type of real estate to invest in (commercial or residential), which property is best to purchase, the best financial sources for a real estate purchase, and when to dispose of property.
Corporate property managers
Corporate property managers manage properties for corporations that invest in real estate or medium and large sized companies that have a large number of real estate properties for corporate operations. Typically, corporate property managers are employees of the corporation and not independent contractors.
Leasing agents
Leasing agents are usually independent contractors working for a Sponsoring Broker on a commission basis and are in high demand because of their skill in securing lessees.
